An overview of the environmental finance policies in China: retrofitting an integrated mechanism for environmental management

Considering the significant roles of the policies in developing environmental finance, an overview is conducted on the environmental finance policies （EFPs） in China. This paper analyzed the definition, scope, evolution and main instruments of EFPs. The implementation progress of financial activities on each instrument are investigated respectively. Then the experiences learned from and failures discovered in the development of the EFPs are discussed well recommendations for further improvement of the EFPs and their implementation are provided. Our study found that the EFPs have been established in China after a four-phase evolution since the early 1980s. The policies have played a critical role in leading to a rapid development in environmental finance by involving more financial instruments to accomplish the objective-led environmental plans. Driven by the policies, the new green credit （GC）, green security （GS）, and green insurance （GI） instruments have been phased in as supplements to the conventional command and control approaches to improve the environmental governance of financial activities and pollution sources. However, the market mechanism of financial institution is limited due to their defensive and incapable performance on implementation some of EFP instruments. To further strengthen the effectiveness of EFPs in facilitating environmental man- agement, recommendations are made mainly on the aspects including developing more specific policy guidelines, enhancing information sharing and disclosure, providing sufficient economic incentives, establishing environmental liabilities with financial activities, and involving issues related to climate change, and biodiversity and ecosystem service.     

Clustering economic sectors in China on a life cycle basis to achieve environmental sustainability

To improve material efficiency, industrial structure optimization becomes a focal point in Chinese industrial and environmental policies. It is crucial to cluster economic sectors and determine their priority for industrial and environmental policy implementation. Integrating a set of criteria, a hybrid input-output model and the hierarchical cluster analysis, this study clusters China’s economic sectors and determines their priority on a life cycle basis. China’s economic sectors are clustered into three clusters. Industrial structure changes (industrial policy) should encourage the development of sectors in cluster 1 and limit the development of sectors in cluster 2. Technology development and materials recycling (two environmental policies) should mainly focus on sectors in clusters 1 and 2. Future industrial policies in China should limit the development of two sectors named Manufacture of metal products and Extraction of petroleum and natural gas. Instead of limiting some industries by command-and-control, the best policy option is to remedy environmental standards and law enforcement. Enterprises belonging to the identified key sectors from the viewpoint of direct production impacts should be concerned to achieve enterprise sustainability. To achieve sustainable production chains, the identified key sectors from the viewpoint of accumulative production impacts should be concerned. For sustainable consumption, the identified key sectors from the viewpoint of consumption impacts should be concerned to transform consumption styles. Most of environmental pressure can be alleviated not only by technical improvements and material recycling, but also by the development of economic sectors in cluster 1.     

Review on environmental policies in China: Evolvement, features, and evaluation

This article reviews the development of current environmental policies in China and the great progress made during 1979–2006. Applying lessons learned from industrialized countries to its own situation, China’s environmental policies have the following main features: (1) to explore command and control measures to their fullest extent, (2) to strive to raise funding for environmental protection, (3) to identify who should take accountability for environmental protection; (4) to encourage strategies of “combination of prevention and control” and “integrated utilization”, (5) to embrace openness in the field of environmental policy and early international cooperation. During the past 30 years, China’s environmental policies have evolved and deepened: status expanded the national basic policies of environmental protection by adding a sustainable development strategy, focus changed from pollution control to a combination of pollution control and ecological protection, method changed from end control to source control, scope changed form point source control to watershed and territory pollution control, and management style changed from primarily using executive power to using legal and economic measures. This article introduces how they are evaluated by the international community and provides the prospects of the policies.     

Development of environmental policy,objectives, and targets

This paper describes a process to develop and establish an environmental policy and its associated environmental targets, objectives, and management programmes. The environmental policy is defined in a statement which addresses the company expectations for programmes that are important to assure adequate environmental protection and define its future commitment towards preventing pollution and continuously improving the effectiveness of its environmental protection programmes. A set of environmental objectives, derived from the policy, define the overall goals which will ensure that the company's environmental performance will remain consistent with the commitment identified in its policy when its environmental management system (EMS) is implemented, Environmental targets reflect the requirements and standards that the company must strive to achieve each objective and minimize any harmful environmental impacts from its production and manufacturing processes or other activities. In addition to defining specific targets, environmental management programmes are also used to guide EMS implementation. These programmes, however, must provide the company with the necessary flexibility to select the most appropriate technologies to enhance its own processes and prudently allocate its available financial resources in areas that return the greatest overall environmental benefit.Though they are expected to allow some discretion in the allocation of resources targeted towards environmental protection, EMS programmes must also provide assurance that the corporation environmental policy, objectives, targets, and management programmes do not result in a facility failure to adhere to all of its certification requirements. The principle and factors described in this article should be considered to the extent that they are necessary and practical.     

Is Chinese trade policy motivated by environmental concerns?

This paper analyses whether China's export VAT rebates and export taxes are driven by environmental concerns. Since China struggles to enforce environmental regulation, trade policy can be used as a second-best environmental policy. In a general equilibrium model it is possible to show that the second-best export tax increases in a product's pollution intensity. The empirical analysis investigates whether the export tax equivalent of partial VAT rebates and export taxes are higher for products which are more pollution intensive along several dimensions. The results indicate that the VAT rebate rates are set in a way that discourages exports of water pollution intensive, SO₂ intensive and energy intensive products from 2007 on. Moreover, the conservation of natural resources such as minerals, metals, wood products and precious stones seems to be a key determinant of China's export VAT rebate rates. There is little evidence that export taxes are motivated by environmental concerns.     

Tourism policy,biodiversity conservation and management: a case of the Kruger National Park,South Africa

Management of Kruger National Park (KNP) has recently made considerable progress in developing new policies to address biodiversity conservation and management challenges. These include tourism, water provision and elephant management policies. This study examines the integration of these three policies with regard to biodiversity conservation and management. Findings indicate that in their current fragmented form, the three policies actually undermine opportunities for effective biodiversity conservation and management in the KNP. This can be reversed by adopting a new management approach based on an environmental matrix organizational framework. Such a framework provides a mechanism for integrated policymaking and implementation and for improving biodiversity conservation and management in the KNP. The study concludes that an integrated approach is necessary due to the interlinkages between policies that affect biodiversity conservation at the KNP.     

Cost-effective environmental policy: implications of induced technological change

Cost-effective environmental policy generally requires that all emission sources are faced with the same tax. In this paper I discuss how the existence of induced technological change may alter this result, if at least some of the effect is external to the firm. Focusing on Learning by doing (LBD) effects in abatement activities, it is shown that emission sources with external learning effects should be faced with a higher tax than emission sources with only autonomous technological change. By using simple numerical simulations, it is further investigated to what degree a cost-effective climate policy differs from a free quota market, under various assumptions about learning effects, diffusion of technology and environmental targets. The results indicate that optimal taxes may be significantly higher in the industrial world than in the developing world. Moreover, the industrial world's share of global abatement may be much higher in a cost-effective solution than in a free quota market. The global cost savings of a fully flexible implementation of the Kyoto Protocol are further questioned, as potential spillover effects of technological growth in the industrial world are not internalised in the market.     

Emissions standards and ambient environmental quality standards with stochastic environmental services

Many important environmental policies involve some combination of emission controls and ambient environmental quality standards, for instance SO₂ emissions are capped under Title IV of the U.S. Clean Air Act Amendments while ambient SO₂ concentrations are limited under National Ambient Air Quality Standards (NAAQS). This paper examines the relative performance of emissions standards and ambient standards when the natural environment provides stochastic environmental services for assimilating pollution. For receiving media characterized by greater dispersion in the distribution of environmental services, the optimal emissions policy becomes more stringent, whereas the optimal ambient policy generally becomes more lax. In terms of economic performance, emissions policies are superior to ambient policies for relatively non-toxic pollutants, whereas ambient standards welfare dominate emissions standards for sufficiently toxic pollutants. In the case of combined policies that jointly implement emissions standards and ambient standards, we show that the optimal level of each standard relaxes relative to its counterpart in a unilateral policy, allowing for greater emissions levels and higher pollution concentrations in the environmental medium.     

Hierarchical methodological framework to improve Policy Environmental Assessment: Based on policy layer research

This study explores the current implementation challenges of the Policy Environmental Assessment (PEA), including the implementation of a far richer, more diverse (at macro level), and better understanding of PEA and integration with decision making. The results contribute to the analysis of PEA through different hierarchies of assessment. Stemming from the theory and practice of policy, a concept of PEA hierarchies is proposed including the uppermost PEA, upper-lower PEA, and lowermost PEA. Afterward, the differences of the three hierarchies are interpreted, in terms of aims, principles, processes, and methods. The evaluation of the policy environmental impacts from different lens helps solve the complexities of policies and identify opportunities for improvement of PEA.     

A comparison of the water management systems in France and China

This paper compares legal systems for water management in France and China, with a focus on integrated water resources management and regarding in particular the formulation of policies and their implementation. The research shows that China has committed itself to the efficient management of water resources through the development of various policy tools during the current period. This commitment, however, has often been interrupted and distorted by politics, resulting in the neglect of socioeconomic and environmental priorities. France has developed a legislative framework and practical instruments to apply integrated water resources management at the river basin level since the 1960s. This experience and the current implementation of the European Water Framework Directive brings elements that can contribute to Chinese society meeting its water challenges.     

Aligning science and policy to achieve evolutionarily enlightened conservation

There is increasing recognition among conservation scientists that long‐term conservation outcomes could be improved through better integration of evolutionary theory into management practices. Despite concerns that the importance of key concepts emerging from evolutionary theory (i.e., evolutionary principles and processes) are not being recognized by managers, there has been little effort to determine the level of integration of evolutionary theory into conservation policy and practice. We assessed conservation policy at 3 scales (international, national, and provincial) on 3 continents to quantify the degree to which key evolutionary concepts, such as genetic diversity and gene flow, are being incorporated into conservation practice. We also evaluated the availability of clear guidance within the applied evolutionary biology literature as to how managers can change their management practices to achieve better conservation outcomes. Despite widespread recognition of the importance of maintaining genetic diversity, conservation policies provide little guidance about how this can be achieved in practice and other relevant evolutionary concepts, such as inbreeding depression, are mentioned rarely. In some cases the poor integration of evolutionary concepts into management reflects a lack of decision‐support tools in the literature. Where these tools are available, such as risk‐assessment frameworks, they are not being adopted by conservation policy makers, suggesting that the availability of a strong evidence base is not the only barrier to evolutionarily enlightened management. We believe there is a clear need for more engagement by evolutionary biologists with policy makers to develop practical guidelines that will help managers make changes to conservation practice. There is also an urgent need for more research to better understand the barriers to and opportunities for incorporating evolutionary theory into conservation practice.     

Regional policy models for forest biodiversity analysis: lessons from coastal Oregon.

The crisis in the early 1990s over conservation of biodiversity in the forests of the Pacific Northwest caused an upheaval in forest policies for public and private landowners. These events led to the development of the Coastal Landscape Assessment and Modeling Study (CLAMS) for the Coast Range Physiographic Province of Oregon, a province containing over two million hectares of forest with a complex mixture of public and private ownership. Over a decade, CLAMS scientists developed regional data bases and tools to enable assessments of the implications of current policies for biodiversity and have begun using these data and tools to test ideas for solving policy problems. We summarize here four main lessons from our work: (1) Regional ecosystem perspectives, while rewarding, are difficult to achieve. Helping policy makers and the public understand biodiversity policies for an entire province can assist in developing more reasoned policies. However, this result is difficult to achieve because needed scientific building blocks generally do not exist, few policy institutions address regional cross-ownership issues, people can find it difficult to take a regional view, and the appropriate region for analysis changes with the policy problem. (2) Interest in environmental policy analysis may come as much from a pursuit of power as a pursuit of understanding. Biodiversity policy analyses are often viewed as weapons in an ongoing political battle. Also, results that might destabilize existing policies generally will not be well received by those in power. (3) The relationship of regional analyses to civic processes remains challenging and unsettled. Communication between citizens and scientists takes real effort. Also, collaborative processes both inspire and constrain regional policy analysis, and scientific work often proceeds at a different pace than these processes. In the end, CLAMS's most important effect on the civic dialogue may be to change how people think about the Coast Range. (4) An important role exists for anticipatory assessments done independently by scientists. Independent review will be especially important as policy analyses shift to management of nonfederal forests. Our future efforts in CLAMS will focus on evaluating ideas for fundamental changes in forest management.     

Strategic environmental policy; eco-dumping or a green strategy?

The Porter hypothesis claims that a strong environmental policy best serves the interests of a nation's export industry. While this hypothesis seems to be based on some form of bounded rationality, this paper argues that governments may have good reasons for setting an especially strong environmental policy even though firms are fully rational. If the available abatement technology turns the environment into an “inferior input”, competitiveness is spurred by a strong environmental policy. The government should take advantage of this, and set an especially strict emission quota or an especially high emission tax. The findings in the paper also has consequences for the desirability of international cooperation with respect to national environmental policy. If a strict environmental policy spurs competitiveness, the environment is better protected without cooperation.     

The progress and challenges in sustainable forestry development in China

Forestry development in China has undergone a series of reforms over the past six decades. This article examines temporal changes in forest resources and policies, the current status of forestry, and future challenges toward sustainable forest management in China. Excessive logging in the 1950s to 1980s badly damaged the nation’s forests, but the adoption of enlightened forest policies in the late 1990s has led to increases in China’s total forest area and growing stock. Forest degradation was ecologically and economically costly, and rehabilitation processes have become increasingly more expensive. The low quality and young age of forest resources, loss of natural forests, and more difficulties in afforestation and reforestation pose severe challenges for China’s sustainable forestry. It is critically important for China to enhance forest productivity through intensive management, strengthen enforcement, and educational programs for protecting and restoring natural forests, narrow the gap between domestic timber supply and rapidly expanding consumption, improve coordinating networks for management, finance, and technology transfer, and accelerate efforts to clarify and stabilize tenure arrangements for non-state forests. China’s experience and lessons in forestry may be helpful for other developing countries that are seeking to achieve the goal of sustainable forest management.     

Moving towards sustainable development: rhetoric,policy and reality of ecological agriculture in China

Past decades have witnessed the rise of sustainable agriculture movements throughout the world. In parallel with this international trend, ecological agriculture (with essential goals of food security, rural employment, poverty alleviation, natural resource management and environmental protection) has been advocated as a workable approach for the realization of sustainable agriculture in China. Two decades of ecological agricultural development have shown that it not only gained legitimacy at the senior policy level but also became a focus of scientific research in fields such as ecological economics, ecology, and agricultural and environmental sciences. However, this endeavour is hardly known in the West and little attention has been paid so far to examining the broader politico-economic and sociocultural contexts within which it has evolved. This paper attempts to provide a general review of the emerging background, development history, policy initiatives and recent tendencies of ecological agriculture. In addition, the extant problems and potential contributions of this alternative practice to China's sustainable agricultural development are discussed. The purpose of this study is to identify the gap between the policy rhetoric and practical implementation of Chinese ecological agriculture and therefore to facilitate its moving towards sustainable development.     

Societal change and the control of deforestation in Thailand

Thailand underwent a major shift in forest policy in the second half of the 1980s to promote sustainable management and control of deforestation. This paper puts this in the context of earlier changes in forest policy and analyses the underlying causes of the shift by analysing changes in the relative strength of different interest groups within the framework of a policy pressures model. Internal pressures had a stronger impact on Thai forest policy than external pressures. Protectionist groups became more numerous and more powerful in Thailand in the 1980s in relation to exploitative groups, and their rise in influence was facilitated by continuing progress in democratization and pluralization, linked to the consequences of economic development. Such political change could help to explain the apparent link between better environmental management and economic development shown in the Environmental Kuznets Curve.     

Double-dipping in environmental markets

There is an increasing tendency to use markets to induce the provision of environmental services. As such markets increase in scope, potential market participants might sell multiple environmental services. The question we consider here is whether participants in such markets should be allowed to sell credits in more than one market simultaneously. Some have argued in favor of such “double-dipping”, because it would make the provision of environmental services more profitable. In practice however, most programs do not allow double-dipping. We show that if the optimal level of pollution abatement is sought, then double-dipping maximizes societal net benefits. However, if pollution policies are set in a piecemeal fashion, then the caps for each market are unlikely to be optimal and, in this second-best setting, a policy prohibiting double-dipping can lead to greater social net benefits. We explore conditions under which a single-market policy is preferred, or equivalently, where piecemeal policies are likely to yield particularly inefficient outcomes.     

Emissions standards and ambient environmental quality standards with stochastic environmental services

Many important environmental policies involve some combination of emission controls and ambient environmental quality standards, for instance SO₂ emissions are capped under Title IV of the U.S. Clean Air Act Amendments while ambient SO₂ concentrations are limited under National Ambient Air Quality Standards (NAAQS). This paper examines the relative performance of emissions standards and ambient standards when the natural environment provides stochastic environmental services for assimilating pollution. For receiving media characterized by greater dispersion in the distribution of environmental services, the optimal emissions policy becomes more stringent, whereas the optimal ambient policy generally becomes more lax. In terms of economic performance, emissions policies are superior to ambient policies for relatively non-toxic pollutants, whereas ambient standards welfare dominate emissions standards for sufficiently toxic pollutants. In the case of combined policies that jointly implement emissions standards and ambient standards, we show that the optimal level of each standard relaxes relative to its counterpart in a unilateral policy, allowing for greater emissions levels and higher pollution concentrations in the environmental medium.     

Preferred conservation policies of shark researchers

There is increasing concern about the conservation status of sharks. However, the presence of numerous different (and potentially mutually exclusive) policies complicates management implementation and public understanding of the process. We distributed an online survey to members of the largest professional shark and ray research societies to assess member knowledge of and attitudes toward different conservation policies. Questions covered society member opinions on conservation and management policies, personal histories of involvement in advocacy and management, and perceptions of the approach of conservation nongovernmental organizations (NGOs) to shark conservation. One hundred and two surveys were completed (overall response rate 21%). Respondents considered themselves knowledgeable about and actively involved in conservation and management policy; a majority believed scientists have a responsibility to advocate for conservation (75%), and majorities have sent formal public comments to policymakers (54%) and included policy suggestions in their papers (53%). They believe sustainable shark fisheries are possible, are currently happening today (in a few places), and should be the goal instead of banning fisheries. Respondents were generally less supportive of newer limit‐based (i.e., policies that ban exploitation entirely without a species‐specific focus) conservation policy tools, such as shark sanctuaries and bans on the sale of shark fins, than of target‐based fisheries management tools (i.e., policies that allow for sustainable harvest of species whose populations can withstand it), such as fishing quotas. Respondents were generally supportive of environmental NGO efforts to conserve sharks but raised concerns about some NGOs that they perceived as using incorrect information and focusing on the wrong problems. Our results show there is an ongoing debate in shark conservation and management circles relative to environmental policy on target‐based natural resources management tools versus limit‐based conservation tools. They also suggest that closer communication between the scientific and environmental NGO communities may be needed to recognize and reconcile differing values and objectives between these groups.